Xilinx Doesn't Flinch

The chipmaker stays its second-quarter course, a day after rival Altera lowers margin targets.
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Xilinx

(XLNX) - Get Report

kept its financial targets steady late Wednesday, one day after its largest competitor lowered its margin targets.

Xilinx, which makes programmable chips, said it still expects fiscal second-quarter sales to be between $405.4 million and $421.6 million, for flat to 4% sequential growth. Gross margins are still expected to be between 61% and 62%.

Analysts had expected sales of $415 million and earnings of 22 cents a share, on average, according to Thomson First Call.

Xilinx also stated that its tax rate will be 15%, down from an earlier projection of 24%, because of a previously announced favorable court ruling regarding taxes.

San Jose, Calif.-based Xilinx makes microchips that can be programmed for use in a variety of products, including data storage applications, automobiles and computers.

Its largest competitor,

Altera

(ALTR) - Get Report

, on Tuesday held its sales targets steady but reduced its gross-margin expectations because of what it said is

a permanent shift away from certain low-volume, high-margin semiconductors.

Shares of Altera dropped almost 8% to $20.11 during Wednesday's regular session; in recent after-hours trade they were off 2 cents to $20.09.

Xilinx shares fared better, closing nominally higher at $28.44. Shares were not active in late trading after the update was announced.